JPMorgan Chase’s Jamie Dimon knows something about manipulation. In a recent interview, he called the political environment “terrible,” and blamed talking heads on cable news for making it even worse: “They are just jazzing you up. You’re being manipulated.”
Which is exactly what Dimon did by way of a recent New York Times editorial, where he announced that he was going to raise “the minimum pay for 18,000 employees to between $12 and $16.50 an hour” (“depending on geographic and market factors”).
A pay increase is the right thing to do. Wages for many Americans have gone nowhere for too long. Many employees who will receive this increase work as bank tellers and customer service representatives. Above all, it enables more people to begin to share in the rewards of economic growth.
But as Annie Lowry [ht: sm] explains,
Were that it really benevolence, or that the raise was a meaningful one.
Wages have been rising as the unemployment rate has fallen below 5 percent and the labor market has tightened. Employers, in other words, are now competing to hire and retain workers, which means offering those workers more money and better working conditions more broadly. Dimon is doing what thousands of other corporate executives and managers are doing — and what all companies have to do when the economy is good. He just managed to convince the op-ed editors at the Times to give him some publicity for doing it.
Moreover, the raise is puny — $1.85 an hour, spread out over three whole years, meaning inflation will eat some of it up. “That’s a roughly 3.2 percent annual boost after taking projected future inflation into account,”noted Lawrence Mishel of the Economic Policy Institute, a left-of-center think tank. “This hardly seems to deserve a parade.”
Just to put things in perspective, total financial sector profits were more than $700 billion in the first of quarter of this year. JPMorgan Chase itself made a net profit of $5.4 billion during the first three months of 2016, which rose to $6.2 billion in the second quarter.
Oh, and his own bank decided to pay Dimon $27 million (in cash and stocks) in 2015, up from $20 million a year earlier.